U.S. banking regulators asked lenders to help credit-worthy borrowers who are under stress from the current state of the commercial real estate industry. The statement from the regulators supersedes the 2009 guidance on commercial real estate loan workouts. Regulators asked financial institutions to work prudently and constructively with good borrowers during times of financial stress. - The new guidance recommends short-term loan accommodations, including agreements to defer one or more payments, make a partial payment, or provide assistance or relief to a borrower.
- The statement was issued by the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corp, the National Credit Union Administration, and the Office of the Comptroller of the Currency.
- Many office landlords, such as Brookfield, Pacific Investment Management, and Blackstone, have defaulted on their loans owing to higher borrowing costs.
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